They're big on services, which would point towards some AI thing but the next step that seems relevant in this area for an Apple-like product is probably general, reliable, human-like AI which is too far off. So my bet is on AR. VR went nowhere but its tech might push AR into something usable. I can totally see Apple producing a Google Glass like device and getting it right, somehow.
They do have ARKit going, which sets them up with a platform to do it on.
They also have the H1 chip in the AirPods, which could potentially be a stepping stone to streaming video from your phone to your headset via an H2 chip.
I don’t see them doing a stand-alone device, or a device with a cable, for awkwardness/dorkiness reasons.
Glasses that are indistinguishable from normal glasses but just pair with your iPhone is the play.
They will make a fortune on premium frames.
Seems like battery size is the limiting factor, but who better than Apple to squeeze a crazy amount of battery into a tiny space. Then there’s heat though. That’s a tough one.
Doesn’t feel like a “this year” thing to me. Feels like a “we’ll release it when the battery/chip tech hits a sweet spot” thing.